HI, just wondering what is risky in regards to size of towns to invest in. I am looking at my potential first IP in january in country SA. It is an 1 hour 20 roughly from adelaide and alot less from outer suburb of gawler (now all linked up – urban sprawl) a price is roughly 75-80 g’s for a 3 bed house renting at 150 weekly. I know the real estate agent there and he says that he ha a list of people wanting to rent. There is factory work and farming – the population is under 10000 however i am concerned. Should i be????
also – does anyone know what i should look up on the net to research the town im planning on investing in??? and what should i look up??
Depends on the town!
I have a number of properties in a town with 5000 people but then I run the largest business in the town that isn’t the government or the government in drag so I suppose that I know what the employment might be like.
It’s the rental availibility that will drive the prices in country towns … Check out the rental lists and that will give you a clue!
Hi rickyw,
I live in Gawler and might have some very interesting info for you if your intersted.
My email is [email protected]ricky, I think it sounds good. I’ve got very good yields in NZ small towns. a lot smaller than 10k! Of course Aussie is different because it’s a lot bigger and the possiility is that towns are remote. But 1 hour 20 from a capital city doesn’t sound too bad. knowing the RE agent and there being employment makes it sound even better.
In fact, given most investors’ reluctance to invest in small towns, it might just be the last bastion of CF+ve properties and rental demand to boot, in Aus! Then again I know less than zero about the place.
very intriguing jubeirei, can you spill your interesting info about your town?
cheers-
miniHI james – just wondering whether you got my email??? not being pushy just wondering whether i sent it to the right address???
Hi Rickyw,
I am also not far from Gawler and would be happy to share what I know about the area u r looking in.
I also think that as long as you are concentrating more on +cp properties and not capitol gains, the size of the town doesn’t matter as such. What does matter is the demand for rental properties and the amount of rent people are willing to pay for the property. When I do my calculations I do NOT take into account capital gains that way it’s a bonus if I get it. Otherwise your just guessing and you could be wrong and you could find yourself losing money. This is my approach, I’m certain others will do things differently.
I hope I explained this well enough?
Regards Bear
ricky, go to google.com and type in the name of the town, and click “australian sites only”. Anything that has been written on the net about the town will come up from this search.
kay henry
G`day Ricky,
I agree with Bear in that if you are not after capital gains in the short term then size is not important.70k @ 150 wk. sounds good,and if your friend is in the game and still in business then look further.I have ip`s in country S.A. and while my area would probably not appeal because of high youth unemployment, aging population, yada yada; this town has been here for 150 years and as long as the numbers add up, I keep buying.
By the way, I have experienced impressive gains as well as +`ve cashflow, although the numbers are smaller in the country, so you need more properties to compare to metro returns.Hi there BEAR1964 – i would greatly appreciate information regarding area etc – i live in perth now so information is great. Should i post my email or back up email address??
Hi there BEAR1964 – i would greatly appreciate information regarding area etc – i live in perth now so information is great. Should i post my email or back up email address??Hi Ricky
Being a slow typest i would prefer a phone call on 0407 607 890…LOL, however you can email me at [email protected]
Regards Bear
Being a reasonable distance to a major capital city is advantageous, plus there are the wineries with in easy driving distance. You will always have a rentable market… I would say, “go for it”
I have properties in a town that some people may not be interested in, but the properties have rented at $110.00 (pp $68,000.00) and the town is a strong farming area but has the infrastructure of a major aviation centre having just been completed by one of Australias largest property holders (shopping centres).
more and more city dwellers who will be lifelong renters are retreating to the “country” as affordability and lifestyle necesitates change.
Lynette
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